FED Publishes Draft Form and Guidance for Reporting Under Volcker Rule
FED published draft the reporting form (FR VV-1) and instructions in connection with the Volcker rule amendments that were finalized in November 2019. FED also published the related technical specifications guidance for preparing and submitting the quantitative measurements. Each banking entity that meets the relevant thresholds must furnish quantitative measurements, as applicable, for each of its trading desks engaged in covered trading activity. The instructions for preparing and submitting quantitative measurement information provide guidance for the submission of the Narrative Statement, the trading desk information schedule, the quantitative measurements information schedules, and each applicable quantitative measurement to the agency. In addition, FED published a supporting statement for FR Y-9 reports.
For preparing quantitative measurements with respect to the form FR VV-1, if a banking entity and one or more of its affiliates are required to report quantitative measurements to the agency, the banking entity and its affiliates should prepare one combined submission to the agency that follows the instructions, the technical specifications guidance, and the XML schema. Banking entities with significant trading assets and liabilities are required to report metrics for each trading day of the month on a quarterly basis. The metrics must be reported within 30 days of the end of each calendar quarter, unless otherwise notified by the agency in writing. The banking entity may submit in a separate electronic document a Narrative Statement to the agency with any information the banking entity views as relevant for assessing the information reported. The Narrative Statement may include further description of or changes to calculation methods, identification of material events, description of and reasons for changes in the banking entity’s trading desk structure or trading desk strategies, and when any such changes occurred.
The supporting statement for FR Y-9 reports explains that FED adopted changes to the FR Y-9C in relation to a final rule that simplifies the capital framework of FED while preserving strong capital requirements for large firms. In connection with the final rule, FED modified the FR Y-9C for holding companies subject to the capital plan rule to collect information regarding a firm’s stress capital buffer requirement, global systemically important bank (G-SIB) surcharge, countercyclical capital buffer amount, as applicable, and any applicable distribution limitations under the regulatory capital rule. The revisions will become effective for the December 31, 2020 report date.
Related Links
- Reporting Form FR VV-1 (PDF)
- Reporting Instructions for FR VV-1 (PDF)
- Technical Specifications Guidance (PDF)
- Supporting Statement for FR Y-9 Reports
- Reporting Form Updates
Keywords: Americas, US, Banking, Securities, Volcker Rule, Dodd-Frank Act, Reporting, FR VV-1, Regulation VV, Market Risk, FR Y-9C, Regulatory Capital, Capital Buffer, Basel, FED
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
FDIC Rule to Mitigate Effects of Participation in Liquidity ProgramsRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.